(Updates with closing prices)
SHANGHAI, Feb 3 (Reuters) - China stocks ended lower on
Friday, with foreign funds halting their buying spree after
nearly one month of net inflows, as investors examined China's
economic recovery after an expectation-led shares rally.
** China's blue-chip CSI 300 Index closed down 1%,
while the Shanghai Composite Index lost 0.7%.
** The Hang Seng Index declined 1.4% and the Hang
Seng China Enterprises Index dropped 1.6%.
** For the week, the CSI 300 lost 1%, and the Hang Seng
tumbled 4.5% to log the biggest weekly decline since
end-October.
** Foreign money snapped a buying streak since Jan. 4,
selling a net 4.2 billion yuan ($622.74 million) of Chinese
shares via the Stock Connect Scheme on Friday.
** Meanwhile, there are no clear signs of domestic
incremental money flowing into the market yet, Industrial
Securities wrote in a note.
** "There are louder voices that a correction would happen
after a January surge in the market," said Bohai Securities
analysts. "Index-wise, we are entering an observation stage in
the near term to examine the recovery and more policies."
** China's stock benchmark jumped 7.4% last month
on bets of China's strong rebound in holiday spending.
** Bohai analysts added future upside depends on a
fundamental recovery, especially in the consumption and property
sectors.
** Market liquidity also tightened marginally after the
Lunar New Year holidays, with the country's central bank
draining 720 billion yuan via open market operations this week.
** Shares in real estate developers , new energy
firms and automobiles declined more
than 1.5% each to lead the decline.
** Tech giants listed in Hong Kong also lost 1.3%.
** In a bright spot, China's services activity in January
expanded for the first time in five months as spending and
travel got a boost from the lifting of stringent COVID curbs,
sending business confidence to near 12-year highs, a private
sector survey showed on Friday.
($1 = 6.7444 Chinese yuan)
(Reporting by Shanghai Newsroom; editing by Uttaresh.V and
Raissa Kasolowsky)
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